The Treasurer Scott Morrison has forced the sale of another 16 residential properties that were bought illegally by foreign nationals, worth in total more than $14 million.
The Treasurer Scott Morrison has ordered the sale of another 16 residential properties that were bought illegally by foreign nationals, worth in total more than $14 million.
The properties are in Victoria, NSW, Queenlsand and Western Australia, and were bought by individuals from the UK, Malaysia, China and Canada. The properties range in value from $200,000 to $2 million.
“The foreign investors either purchased established residential property without Foreign Investment Review Board approval, or had approval but their circumstances changed, meaning they were breaking the rules," Morrison said in a statement.
Since taking office in 2013, the Coalition has forced foreign individuals to sell 46 properties worth nearly $93 million. A tighter regime was introduced in 2015, and since then, 179 notices have been issued to people who failed to obtain the necessary FIRB approval before buying a property.
“Foreign investment provides significant benefits for Australia but we must also ensure that such investment benefits all Australians, is in-line with our rules and is not contrary to our national interest," said Morrison.
Non-compliant real estate purchases by foreign individuals now attract penalties of up to $135,000 or three years in prison, or both, for individuals, and fines of up to $675,000 for companies. Capital gains made on illegal purchases can also be forfeited, under the new rules.
A number of foreign investors have voluntarily sold their properties since the new rules were introduced, suggesting the tighter rules are having a deterrent effect.
“There are at least 25 examples of foreign investors self-divesting in this way showing a change in behaviour towards more compliance with the rules and a strengthening of the program overall,” said the Treasurer in his statement.
See also:
Why Chinese buyers aren’t going anywhere
Bangkok fair demonstrated keenness of investors despite taxes
Foreign buyers cooling towards Aussie property